There is only one definition of business Purpose to create a customer . The customer is the start and the success point of any business
A Customer is the most Important Visitor On our Premises , He is not dependent on us , we are dependent on him . He is not an interruption in our work – He is the purpose of it .We are not doing favor by servicing him , He is doing us a favor by Giving us the opportunity to serve him .
A consumer is an individual , group or an organization that consumes or uses a product for end use purpose or for final consumption , the terms ‘Customer’ and ‘Consumer’ are used interchangeably .
However , the customer is the buyer of the product , and he may or may not be the final user of the product . The consumer may or may not be the buyer , but he / She is the final user of the product .
The Importance of consumer to a business organization can be briefly stated as follows
Ensure survival and success : Good consumers ensure survival and success of a business firm . Satisfied customers continue to provide patronage to business organizations . they go for repeat purchases of the firm’s Products . No business organization can survive and succeed without the support of its customers .
Extends Brand Loyalty : A satisfied customer helps to extend brand loyalty . Brand Loyalty refers to : Repeat purchases by satisfied customer .
- Repeat purchases by satisfied customer
- Favorable recommendation of the product to others ( though Favorable recommendation , loyal customers extend brand loyalty )
Extends Corporate Image : Customer are like brand ambassadors . they help to improve the image of the company . they may talk good thing about a company , which in turn helps to extend or enhance company image in the mind of several people .
For instance : Lecturers in a college ( who may be the customers of particular company ) may give example of good company to support their lecture in the class . by doing so , they tend to extend corporate image in the mind of the students .
Helps to expand markets : Customer help to expand the markets . due to the support of customer , a company may encouraged to expand its business activities from local level to regional level from regional level to national level and even at international level .
Facilitates Product development : Customer facilitate product development . some customers may give suggestions to improve the features of the product . the company may also undertake market research to get the product . the company may also undertake marker research to get the feedback from the customers , though feedback , a company can introduce product modifications
Increase the wealth of a firm : Customer increase the wealth of a firm , Though repeat purchases , loyal customers increase the profits of a firm . Increases in profit leads to increase in the wealth of the owners or shareholders of the firm
Facilitates optimum use of resources : Customer enable a firm to make optimum use of its resources . Though repetitive orders the firm is in position to make use of its resources –
Physical Resources Capital resources Manpower
Helps to face Competition : Loyal customer helps to face competition in the market . the loyal customer do not easily switch over to competitors product in spite of tempting offers by the competitions , therefore , a firm get competitive edge due to satisfied customers.